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American Morning
Standoff Continues in Najaf; Terrorism Financing Scheme; Political Attack Ads
Aired August 20, 2004 - 11:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
DARYN KAGAN, CNN ANCHOR: It is 11:00 a.m. on the East Coast and 8:00 a.m. on the West Coast. From CNN in New York City this morning, good morning once again. I'm Daryn Kagan.
And up first this hour on CNN, conflicting reports about the standoff in Najaf. The Pentagon says reports that Iraqi police have taken control of the Imam Ali mosque are false. Our John Vause is tracking developments. He joins us with this fluid story with the latest from Baghdad.
John, hello.
JOHN VAUSE, CNN CORRESPONDENT: Hello again, Daryn.
Iraqi police in Najaf now telling CNN that they are not, they are not in control of the Imam Ali mosque. That coming to CNN just moments ago.
A spokesperson for Muqtada al-Sadr in Najaf saying that they are still in control of the Imam Ali mosque, that they have yet to hand the keys over to the senior Shiite clerics in Najaf. That authority handover has not taken place yet. They are yet to receive a delegation from the Grand Ayatollah Sistani. So that's two.
You just mentioned, Daryn, the Pentagon saying claims that Iraqi police in control of the Imam Ali mosque are, in fact, false. U.S. military headquarters here in Baghdad saying they cannot confirm those reports. U.S. Marines in Najaf telling CNN's Matthew Chance, who is embedded with them, they say they have no intelligence that these reports are true.
What the U.S. Marines in Najaf are saying is that earlier today there was a three-hour cease-fire in observance of three-hour prayers. They're now speculating that possibly the police entered the mosque during the three-hour cease-fire for prayers and then left, but there seems to be no amount of people, no shortage amount of people who are knocking down these claims coming from the Iraqi Interior Ministry that this is all over -- Daryn.
KAGAN: So the standoff still continues, John?
VAUSE: The standoff continues. It's been going on now for more than two weeks.
It does appear, though, that there has been some movement. What is important in all of this is that earlier today, there was agreement on the part of the Grand Ayatollah al-Sistani, who is the Shiite leader in Iraq, that he would accept responsibility, he would accept the keys of the mosque. That is yet to happen.
So when that happens, then we can expect some major developments. But as yet, the people inside the mosque, Muqtada al-Sadr and his Mehdi militia, are expecting a delegation from Sistani. This is what they're saying, but that delegation has not arrived yet, it has not happened. It appears that Muqtada al-Sadr and his Mehdi militia still are in control of the Imam Ali mosque.
KAGAN: All right. John Vause watching that situation from Baghdad. Thank you.
Now we focus on news from here in the U.S. Three Democratic senators are claiming $8 billion for Iraqi government programs are essentially unaccounted for. The lawmakers say the coalition transferred what it calls a staggering sum of money to the Iraqis with no rules or guidelines for oversight.
The allegation comes from an audit conducted by the inspector general. The Pentagon says the audit is a draft and it's too early to comment on that. Besides, a spokeswoman says any money would have to come from Iraqi oil sales.
The Justice Department says three people are accused in an alleged terrorism financing scheme. Two are here in custody in the U.S., the third is still at large. Our Jeanne Meserve is in Washington with more on the announcement by Attorney General John Ashcroft. You saw it live, right here on CNN in the last hour. And Jeanne was right there watching it with us.
Jeanne, good morning.
JEANNE MESERVE, CNN HOMELAND SECURITY CORRESPONDENT: Daryn, the men are charged with racketeering and conspiracy for allegedly running what U.S. officials call a U.S.-based recruiting and financing sale for Hamas. Hamas has been designated by the U.S. as a terrorist organization and has claimed credit for car bombings, suicide bombings and drive-by shootings in Israel and the occupied territories.
Mohammed Salah (ph) was arrested last night in Chicago. Abdel Ashkar (ph) was taken into custody in northern Virginia. The third man indicted but still at large is Musa Abu Marzuk (ph). He is described in the indictment as the deputy chief of the Hamas political bureau. He is believed to be in Syria. The U.S. alleges these men recruited and trained new members of Hamas.
(BEGIN VIDEO CLIP)
JOHN ASHCROFT, ATTORNEY GENERAL: The United States makes no distinction between those who carry out terrorist attacks and those who knowingly finance, manage or supervise terrorist organizations. This case would have been much more difficult to bring were it not for information sharing authorized by the USA Patriot Act. Information gathered by the intelligence community and now shared with law enforcement was critical in completing this investigation and bringing this indictment.
(END VIDEO CLIP)
MESERVE: This is just one of many probes into terrorist financing being conducted by U.S. officials. The U.S. alleges that this recruiting and financing cell was operational for 15 years, using accounts in the U.S. and in Israel to move money to recruit terrorists and finance attacks. The United States is seeking the forfeiture of $2.7 million in accounts held by these individuals.
Interestingly, for the first time, the attorney general went out of his way to say that this indictment is not a reflection on what he called the well-meaning people who practice the Muslim faith. Daryn, back to you.
KAGAN: And Jeanne, one thing that's so interesting about this announcement, as you were pointing out, the long time span that they're looking at. So if it's a 15-year time span, any indication why they made the move to make the arrest now?
MESERVE: Daryn, at this point in time I simply don't have that information for you. I'll try and check up on it for you.
KAGAN: All right. Jeanne Meserve, thank you for that and for following the story from Washington, D.C.
Politics and the swirling controversy over an anti-Kerry commercial. John Kerry campaigned in Charlotte this morning and then heads to Florida to see hurricane damage. He's bristling over a television ad that questions his service during the Vietnam War. Kerry calls the group behind the spot a front for the Bush campaign, an allegation that the White House denies. Now a "New York Times" investigation ties some members of the Swift Boat Vets for Truth the Bush family, as well as to presidential adviser Karl Rove.
(BEGIN VIDEO CLIP)
SEN. JOHN KERRY (D-MA), PRESIDENTIAL CANDIDATE: The president keeps telling people he would never question my service to our country. Instead, he watches as a Republican-funded attack group does just that. Well, if he wants to have a debate about our service in Vietnam, here is my answer: bring it on.
(APPLAUSE)
(END VIDEO CLIP)
KAGAN: Swift Boat Veterans contend that Kerry is lying about incidents that led to his medals for bravery. Today, despite Kerry's objection, the group released a new ad. Kerry responded with an ad of his own, featuring a man who says that Kerry pulled him out of a river in Vietnam while he was under fire.
President Bush denies that his campaign's fingerprints are on the Swift Boat ads. His aides call the veterans an independent group that is entitled to free speech. The president has not denounced this particular soft money ad despite the call from Senator John McCain.
(BEGIN VIDEO CLIP)
SCOTT MCCLELLAN, WHITE HOUSE PRESS SECRETARY: The president has condemned all of the ads and condemned all of the soft money, unregulated soft money activity.
(END VIDEO CLIP)
KAGAN: Let's look at some new numbers from CBS News. A poll there showing that Swift Boat ads might actually be taking a toll on the Kerry campaign. The survey found veterans prefer President Bush over Democrat Kerry, 55 to 37 percent. Just after the Democratic convention, Kerry and Bush were running neck and neck with veteran groups.
Let's talk about the attack ads and Kerry's fiery response with senior political analyst, Bill Schneider, who is in Washington this morning.
Bill, good morning.
WILLIAM SCHNEIDER, CNN SR. POLITICAL ANALYST: Good morning.
KAGAN: It would appear that the ads are working.
SCHNEIDER: Well, we've got to be cautious. This is one poll, and veterans are only 16 percent of American voters. There is a suggestion here that veterans are becoming more negative to Kerry, but we really have to wait until we see more evidence.
I would say, however, that both the Kerry campaign and the Swift Boat Veterans group are behaving as if the ads are effective. Kerry felt compelled to come out with a response directly to those ads, which I don't think he would have done if he didn't think they were significant or having some effect. And the Swift Boat Veterans, as you indicated, are coming out with another ad today.
KAGAN: Think it might be a conspiracy tongue twister to get the media to trip over Swift Boat Veterans over and over again. Now, so Kerry finally comes out, comes out swinging. Why now?
SCHNEIDER: Well, he has to act quickly. And some say he hasn't acted quickly enough.
He remembers what happened to Michael Dukakis back in 1988 when there were a lot of charges made against him by Bush's father in that campaign. And he didn't respond very quickly. And he got labeled a wimp.
Well, Kerry doesn't want those charges to lie out there. In fact, he's arguing with some evidence that those making the charges are inconsistent with some things they've said in the past, defending Senator Kerry, some things that are on the record. He's arguing that there are serious questions about their credibility and whether they actually witnessed Kerry's behavior during those incidents in Vietnam. And he wants his position to be out there on the record as quickly as possible.
KAGAN: Meanwhile, while this goes back and forth between -- between the groups, between the campaigns, very little discussion of the real issues taking place. Is this what we have to look forward to, or are we going to get back to issues?
SCHNEIDER: Well, certainly Kerry would benefit from a discussion of the issues, because, on most issues, with one exception, terrorism, he's ahead of President Bush. So if this were an issue-based campaign about the economy, jobs, health care, Kerry might be making more headway than he is.
The problem with this is this issue has hijacked the campaign. And it's not doing Senator Kerry really any good, because as long as it's a debate about his record, 35 years ago in Vietnam, in the Vietnam War, he can't really score many points on the issues.
He's got to get the campaign back to a discussion of President Bush's record as president for the last four years. And this issue has really taken up all the energy in the campaign so far.
KAGAN: Bill Schneider in Washington, D.C. Thank you for that.
SCHNEIDER: Sure.
KAGAN: Governor Piscopo. Say it ain't so, Joe. Now that Governor McGreevey has revealed his intention to resign, some folks think, get this, "Saturday Night Live" alumnus and self-proclaimed Jersey guy, Joe Piscopo, is just what the Garden State needs. Piscopo spoke about the draft Piscopo proposal earlier with Bill Hemmer on AMERICAN MORNING.
(BEGIN VIDEO CLIP)
JOE PISCOPO, ACTOR & COMEDIAN: Well, I had some serious people talk to me, Bill. We're very concerned about the state and that the -- you know, I wrote the jokes 20 years ago, but now it's almost not funny the way Jersey's getting hit.
And I'm reading "The Wall Street Journal" and I'm reading all these national publications, "USA Today," saying the problems we have in Jersey. So the people that came to me and asked me to run, they're serious.
(END VIDEO CLIP)
KAGAN: All right. Piscopo's affection for New Jersey runs rally deep. His entire comedy career was dotted with Jersey caricatures and jokes. The state may be yet another vehicle for another career in politics.
The Big Apple wants to pin protesters during the Republican National Convention. Officials say it's just a welcome for peaceful protesters. But some critics are crying foul. I'll talk with a city official about the new button program.
Michael Jackson's defense team grills the stepfather of the pop star's accuser. We'll tell you what he had to say.
And still ahead...
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: Honest money, without selling drugs or something else.
(END VIDEO CLIP)
KAGAN: ... unmasking an attraction in the Big Apple.
(COMMERCIAL BREAK)
(STOCK MARKET REPORT)
(COMMERCIAL BREAK)
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: Hell no, we won't go!
UNIDENTIFIED FEMALE: Hell no, we won't go!
UNIDENTIFIED MALE: Hell no, we won't go!
(END VIDEO CLIP)
KAGAN: New York City is gearing up for the Republican National Convention late this month. And with any political gathering comes protests. This was just an exercise, but in a few days it's going to be the real thing, when some 200,000 activists show up to exercise their right for free speech.
New York is taking a novel approach to protests by dangling another American staple, capitalism, in front of demonstrators. Keep it peaceful and enjoy big savings around the city at restaurants, hotels, museums and even Broadway shows. Crystine Nicholas is president of NYC & Company, otherwise known as the Convention and Visitors Bureau.
Good morning.
CRYSTINE NICHOLAS, NYC & COMPANY: Good morning.
KAGAN: I know you've got a ton of stuff getting ready for next week.
NICHOLAS: Absolutely.
KAGAN: Now, you're wearing the button.
NICHOLAS: I am, for you.
KAGAN: For me. Just for me.
NICHOLAS: Yes.
KAGAN: Thank you, Crystine. What is really the idea behind the button?
NICHOLAS: Well, the idea is really to welcome the thousands of people that are going to be visiting New York City for the purpose of getting their message out. They can be tourists, too. There's nothing wrong with that.
They should be given what other tourists are given, opportunities at the cultural institutions, discounts on dining, theater. You know, why not? This was really a welcome mat that we were putting out. So, you know, there's -- there's no conspiracy.
KAGAN: There's no conspiracy. I mean, I just have to say, you've got to be kidding.
NICHOLAS: Why? Look, if you were going to have a group and someone in the papers, they were reporting 200,000 people were going to be coming in...
(CROSSTALK)
KAGAN: But this is what -- I mean, you're expecting 200,000 protesters.
NICHOLAS: Well, that's -- that's what's been reported.
KAGAN: OK.
NICHOLAS: And if you did nothing, then would you really be welcoming? We're the tourism bureau.
KAGAN: Right.
NICHOLAS: That's what we do. We welcome people.
KAGAN: OK, you've got to -- you've got to do something.
NICHOLAS: You've got to do something. And...
KAGAN: But just like for the sake of conversation, let's think about this. Somebody is coming here to protest the Republican convention, they have some serious issues. They don't want to -- they don't like what the Republican platform might be. Do you really think they're going to come here, put on a button and go to a Broadway show?
NICHOLAS: They might. Hey, look, this came from the left.
I was up on the upper west side at a breakfast and someone said, "Why aren't you doing anything for the protesters?" So then we met with the group, with Gary Ferdman (ph), with others. So this is an idea...
(CROSSTALK)
KAGAN: (UNINTELLIGIBLE) to a Broadway show?
NICHOLAS: So, you know, we were -- you know, no good deed goes unpunished, right?
KAGAN: Right.
NICHOLAS: They tell us, what are you doing for us? So you put together an amazing program. It's like...
KAGAN: And you get laughed at.
NICHOLAS: Yes. So, look...
KAGAN: There you go.
NICHOLAS: ... this is part of -- it's going to be a fun week. A lot of people are going to be there.
You know, bravo to the president for picking New York City. We're very pleased. We need the help.
Keep in mind, we're not back from 9/11. We're still suffering with tourism. We may have more people, but we certainly don't have the spending because the international figures are way off.
So, you know, the more the merrier. But we -- the message also is very clear: keep it peaceful.
KAGAN: Right.
NICHOLAS: New York City isn't really going to want to tolerate riots or anything like that. We've got the best police department. You know, the will -- they will control that. But while you're here, we want you to have a good time.
KAGAN: Yes. And I'm not speaking for protesters, but I've got to think, a protester coming to town with something to say doesn't care so much about shopping, a good restaurant. Cares about getting the message out, cares about access to the people who are going to the conventions and not being held really far away.
NICHOLAS: OK. But they've got to eat, they've got to stay some place. So I would rather that they stay in a hotel. And if we can get hotel rates for them that are manageable, I would rather they stay in a hotel than in the park or on someone's couch. We need to make sure that New York City benefits economically because we're still not back fully from 9/11.
KAGAN: So you're saying it's two separate issues in terms of what kind of access they're going to get, where they're going to be allowed to protest.
NICHOLAS: That's not my department.
KAGAN: That's not you.
NICHOLAS: Yes. I'm the tourism bureau person.
KAGAN: OK.
NICHOLAS: You know, I just want everybody who comes to New York City to have a great time. Because, keep in mind, they're going to go home, back to their communities. And even if they protested, and, you know, they can say, but we had a wonderful time.
They may not agree with the president. That's their -- that's their issue. But I have to make sure that whoever comes to New York City is going to have, you know, as best a time as possible.
KAGAN: And hopefully empty their wallets a little bit.
NICHOLAS: Right, and come back. I mean, come -- bring -- bring their friends and family back for a vacation.
KAGAN: Doing what you can.
NICHOLAS: Yes.
KAGAN: Keep it peaceful, spend some money.
NICHOLAS: Exactly. Why not?
KAGAN: Thank you so much, Crystine Nicholas.
NICHOLAS: It's the American way.
KAGAN: Absolutely. Get a little capitalism in there. Crystine Nicholas, thanks for explaining the buttons. Appreciate it.
NICHOLAS: OK.
KAGAN: Well, an unexpected weather arrival causes some problems in western Pennsylvania. We'll have that story after the break, plus a check of the rest of the nation's weather forecast.
Still ahead, how doctors -- get this -- they used a piece of a woman's tooth to help restore her sight. It's a fascinating story. It's just ahead.
(COMMERCIAL BREAK)
KAGAN: Yes, it's summer. This is a summer storm laying down a carpet of hail yesterday near Pittsburgh. Excuse me.
The National Weather service did detect a tornado signature on the radar, but there were no specific reports of a funnel cloud. Power was knocked out to some 30,000 customers. Incredible.
(WEATHER REPORT)
KAGAN: Another record high -- these different types of numbers -- another record high for oil prices. So what is fueling the spiral and what does it mean for your prices at the pump? We'll have a live report after the break.
Plus, Michael Jackson's lawyers take on a member of his accuser's family in court. Find out what happened coming up next.
(COMMERCIAL BREAK)
KAGAN: I'm Daryn Kagan in New York City today. Let's check what's happening "Now in the News" for this Friday, August 20th.
Despite reports to the contrary, fighters loyal to radical cleric Muqtada al-Sadr remain in control of the Imam Ali mosque in Najaf. Fighting continues outside the shrine. Al-Sadr aides do say that procedures are under way to hand over control of the mosque to senior religious leaders in Najaf.
Here in the U.S., Senator John Kerry campaigned in North Carolina this morning. And then he heads to Florida. He will tour damage from Hurricane Charley in the southwestern part of the state this afternoon.
And another explosion at a natural gas storage facility sent fire high into the early morning sky outside of Houston. Check out those pictures. Officials are expanding their evacuation zone from one mile to three miles after another blast took place.
Keeping you informed, CNN is the most trusted name in news.
And the standoff apparently continues in the Iraqi city of Najaf. The Iraqi government is urging militants there to lay down their weapons and join in the political process. In the last hour -- and we're looking at a live picture there from Najaf -- last hour, I had a chance to speak with the national security adviser, Mouwaffaq al- Rubaie.
(BEGIN VIDEO CLIP)
MOUWAFFAQ AL-RUBAIE, IRAQ NATIONAL SECURITY ADVISER: We in the executive arm of this government, we would like the (UNINTELLIGIBLE) trend. These -- his followers, his lieutenants, those who have not been incriminated and accused by -- for killing or for violating the law and disturbance or using any sort of violence, we would like to incorporate them and re-integrate them into the society and into the political process.
(END VIDEO CLIP)
KAGAN: Al-Rubaie says the democracy emerging in Iraq can accommodate even extremist groups, like followers of Muqtada al-Sadr.
Let's check in on oil prices now. They neared a record of $50 a barrel today. Traders are even talking about $60.
(STOCK MARKET REPORT)
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Aired August 20, 2004 - 11:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
DARYN KAGAN, CNN ANCHOR: It is 11:00 a.m. on the East Coast and 8:00 a.m. on the West Coast. From CNN in New York City this morning, good morning once again. I'm Daryn Kagan.
And up first this hour on CNN, conflicting reports about the standoff in Najaf. The Pentagon says reports that Iraqi police have taken control of the Imam Ali mosque are false. Our John Vause is tracking developments. He joins us with this fluid story with the latest from Baghdad.
John, hello.
JOHN VAUSE, CNN CORRESPONDENT: Hello again, Daryn.
Iraqi police in Najaf now telling CNN that they are not, they are not in control of the Imam Ali mosque. That coming to CNN just moments ago.
A spokesperson for Muqtada al-Sadr in Najaf saying that they are still in control of the Imam Ali mosque, that they have yet to hand the keys over to the senior Shiite clerics in Najaf. That authority handover has not taken place yet. They are yet to receive a delegation from the Grand Ayatollah Sistani. So that's two.
You just mentioned, Daryn, the Pentagon saying claims that Iraqi police in control of the Imam Ali mosque are, in fact, false. U.S. military headquarters here in Baghdad saying they cannot confirm those reports. U.S. Marines in Najaf telling CNN's Matthew Chance, who is embedded with them, they say they have no intelligence that these reports are true.
What the U.S. Marines in Najaf are saying is that earlier today there was a three-hour cease-fire in observance of three-hour prayers. They're now speculating that possibly the police entered the mosque during the three-hour cease-fire for prayers and then left, but there seems to be no amount of people, no shortage amount of people who are knocking down these claims coming from the Iraqi Interior Ministry that this is all over -- Daryn.
KAGAN: So the standoff still continues, John?
VAUSE: The standoff continues. It's been going on now for more than two weeks.
It does appear, though, that there has been some movement. What is important in all of this is that earlier today, there was agreement on the part of the Grand Ayatollah al-Sistani, who is the Shiite leader in Iraq, that he would accept responsibility, he would accept the keys of the mosque. That is yet to happen.
So when that happens, then we can expect some major developments. But as yet, the people inside the mosque, Muqtada al-Sadr and his Mehdi militia, are expecting a delegation from Sistani. This is what they're saying, but that delegation has not arrived yet, it has not happened. It appears that Muqtada al-Sadr and his Mehdi militia still are in control of the Imam Ali mosque.
KAGAN: All right. John Vause watching that situation from Baghdad. Thank you.
Now we focus on news from here in the U.S. Three Democratic senators are claiming $8 billion for Iraqi government programs are essentially unaccounted for. The lawmakers say the coalition transferred what it calls a staggering sum of money to the Iraqis with no rules or guidelines for oversight.
The allegation comes from an audit conducted by the inspector general. The Pentagon says the audit is a draft and it's too early to comment on that. Besides, a spokeswoman says any money would have to come from Iraqi oil sales.
The Justice Department says three people are accused in an alleged terrorism financing scheme. Two are here in custody in the U.S., the third is still at large. Our Jeanne Meserve is in Washington with more on the announcement by Attorney General John Ashcroft. You saw it live, right here on CNN in the last hour. And Jeanne was right there watching it with us.
Jeanne, good morning.
JEANNE MESERVE, CNN HOMELAND SECURITY CORRESPONDENT: Daryn, the men are charged with racketeering and conspiracy for allegedly running what U.S. officials call a U.S.-based recruiting and financing sale for Hamas. Hamas has been designated by the U.S. as a terrorist organization and has claimed credit for car bombings, suicide bombings and drive-by shootings in Israel and the occupied territories.
Mohammed Salah (ph) was arrested last night in Chicago. Abdel Ashkar (ph) was taken into custody in northern Virginia. The third man indicted but still at large is Musa Abu Marzuk (ph). He is described in the indictment as the deputy chief of the Hamas political bureau. He is believed to be in Syria. The U.S. alleges these men recruited and trained new members of Hamas.
(BEGIN VIDEO CLIP)
JOHN ASHCROFT, ATTORNEY GENERAL: The United States makes no distinction between those who carry out terrorist attacks and those who knowingly finance, manage or supervise terrorist organizations. This case would have been much more difficult to bring were it not for information sharing authorized by the USA Patriot Act. Information gathered by the intelligence community and now shared with law enforcement was critical in completing this investigation and bringing this indictment.
(END VIDEO CLIP)
MESERVE: This is just one of many probes into terrorist financing being conducted by U.S. officials. The U.S. alleges that this recruiting and financing cell was operational for 15 years, using accounts in the U.S. and in Israel to move money to recruit terrorists and finance attacks. The United States is seeking the forfeiture of $2.7 million in accounts held by these individuals.
Interestingly, for the first time, the attorney general went out of his way to say that this indictment is not a reflection on what he called the well-meaning people who practice the Muslim faith. Daryn, back to you.
KAGAN: And Jeanne, one thing that's so interesting about this announcement, as you were pointing out, the long time span that they're looking at. So if it's a 15-year time span, any indication why they made the move to make the arrest now?
MESERVE: Daryn, at this point in time I simply don't have that information for you. I'll try and check up on it for you.
KAGAN: All right. Jeanne Meserve, thank you for that and for following the story from Washington, D.C.
Politics and the swirling controversy over an anti-Kerry commercial. John Kerry campaigned in Charlotte this morning and then heads to Florida to see hurricane damage. He's bristling over a television ad that questions his service during the Vietnam War. Kerry calls the group behind the spot a front for the Bush campaign, an allegation that the White House denies. Now a "New York Times" investigation ties some members of the Swift Boat Vets for Truth the Bush family, as well as to presidential adviser Karl Rove.
(BEGIN VIDEO CLIP)
SEN. JOHN KERRY (D-MA), PRESIDENTIAL CANDIDATE: The president keeps telling people he would never question my service to our country. Instead, he watches as a Republican-funded attack group does just that. Well, if he wants to have a debate about our service in Vietnam, here is my answer: bring it on.
(APPLAUSE)
(END VIDEO CLIP)
KAGAN: Swift Boat Veterans contend that Kerry is lying about incidents that led to his medals for bravery. Today, despite Kerry's objection, the group released a new ad. Kerry responded with an ad of his own, featuring a man who says that Kerry pulled him out of a river in Vietnam while he was under fire.
President Bush denies that his campaign's fingerprints are on the Swift Boat ads. His aides call the veterans an independent group that is entitled to free speech. The president has not denounced this particular soft money ad despite the call from Senator John McCain.
(BEGIN VIDEO CLIP)
SCOTT MCCLELLAN, WHITE HOUSE PRESS SECRETARY: The president has condemned all of the ads and condemned all of the soft money, unregulated soft money activity.
(END VIDEO CLIP)
KAGAN: Let's look at some new numbers from CBS News. A poll there showing that Swift Boat ads might actually be taking a toll on the Kerry campaign. The survey found veterans prefer President Bush over Democrat Kerry, 55 to 37 percent. Just after the Democratic convention, Kerry and Bush were running neck and neck with veteran groups.
Let's talk about the attack ads and Kerry's fiery response with senior political analyst, Bill Schneider, who is in Washington this morning.
Bill, good morning.
WILLIAM SCHNEIDER, CNN SR. POLITICAL ANALYST: Good morning.
KAGAN: It would appear that the ads are working.
SCHNEIDER: Well, we've got to be cautious. This is one poll, and veterans are only 16 percent of American voters. There is a suggestion here that veterans are becoming more negative to Kerry, but we really have to wait until we see more evidence.
I would say, however, that both the Kerry campaign and the Swift Boat Veterans group are behaving as if the ads are effective. Kerry felt compelled to come out with a response directly to those ads, which I don't think he would have done if he didn't think they were significant or having some effect. And the Swift Boat Veterans, as you indicated, are coming out with another ad today.
KAGAN: Think it might be a conspiracy tongue twister to get the media to trip over Swift Boat Veterans over and over again. Now, so Kerry finally comes out, comes out swinging. Why now?
SCHNEIDER: Well, he has to act quickly. And some say he hasn't acted quickly enough.
He remembers what happened to Michael Dukakis back in 1988 when there were a lot of charges made against him by Bush's father in that campaign. And he didn't respond very quickly. And he got labeled a wimp.
Well, Kerry doesn't want those charges to lie out there. In fact, he's arguing with some evidence that those making the charges are inconsistent with some things they've said in the past, defending Senator Kerry, some things that are on the record. He's arguing that there are serious questions about their credibility and whether they actually witnessed Kerry's behavior during those incidents in Vietnam. And he wants his position to be out there on the record as quickly as possible.
KAGAN: Meanwhile, while this goes back and forth between -- between the groups, between the campaigns, very little discussion of the real issues taking place. Is this what we have to look forward to, or are we going to get back to issues?
SCHNEIDER: Well, certainly Kerry would benefit from a discussion of the issues, because, on most issues, with one exception, terrorism, he's ahead of President Bush. So if this were an issue-based campaign about the economy, jobs, health care, Kerry might be making more headway than he is.
The problem with this is this issue has hijacked the campaign. And it's not doing Senator Kerry really any good, because as long as it's a debate about his record, 35 years ago in Vietnam, in the Vietnam War, he can't really score many points on the issues.
He's got to get the campaign back to a discussion of President Bush's record as president for the last four years. And this issue has really taken up all the energy in the campaign so far.
KAGAN: Bill Schneider in Washington, D.C. Thank you for that.
SCHNEIDER: Sure.
KAGAN: Governor Piscopo. Say it ain't so, Joe. Now that Governor McGreevey has revealed his intention to resign, some folks think, get this, "Saturday Night Live" alumnus and self-proclaimed Jersey guy, Joe Piscopo, is just what the Garden State needs. Piscopo spoke about the draft Piscopo proposal earlier with Bill Hemmer on AMERICAN MORNING.
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JOE PISCOPO, ACTOR & COMEDIAN: Well, I had some serious people talk to me, Bill. We're very concerned about the state and that the -- you know, I wrote the jokes 20 years ago, but now it's almost not funny the way Jersey's getting hit.
And I'm reading "The Wall Street Journal" and I'm reading all these national publications, "USA Today," saying the problems we have in Jersey. So the people that came to me and asked me to run, they're serious.
(END VIDEO CLIP)
KAGAN: All right. Piscopo's affection for New Jersey runs rally deep. His entire comedy career was dotted with Jersey caricatures and jokes. The state may be yet another vehicle for another career in politics.
The Big Apple wants to pin protesters during the Republican National Convention. Officials say it's just a welcome for peaceful protesters. But some critics are crying foul. I'll talk with a city official about the new button program.
Michael Jackson's defense team grills the stepfather of the pop star's accuser. We'll tell you what he had to say.
And still ahead...
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UNIDENTIFIED MALE: Honest money, without selling drugs or something else.
(END VIDEO CLIP)
KAGAN: ... unmasking an attraction in the Big Apple.
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(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: Hell no, we won't go!
UNIDENTIFIED FEMALE: Hell no, we won't go!
UNIDENTIFIED MALE: Hell no, we won't go!
(END VIDEO CLIP)
KAGAN: New York City is gearing up for the Republican National Convention late this month. And with any political gathering comes protests. This was just an exercise, but in a few days it's going to be the real thing, when some 200,000 activists show up to exercise their right for free speech.
New York is taking a novel approach to protests by dangling another American staple, capitalism, in front of demonstrators. Keep it peaceful and enjoy big savings around the city at restaurants, hotels, museums and even Broadway shows. Crystine Nicholas is president of NYC & Company, otherwise known as the Convention and Visitors Bureau.
Good morning.
CRYSTINE NICHOLAS, NYC & COMPANY: Good morning.
KAGAN: I know you've got a ton of stuff getting ready for next week.
NICHOLAS: Absolutely.
KAGAN: Now, you're wearing the button.
NICHOLAS: I am, for you.
KAGAN: For me. Just for me.
NICHOLAS: Yes.
KAGAN: Thank you, Crystine. What is really the idea behind the button?
NICHOLAS: Well, the idea is really to welcome the thousands of people that are going to be visiting New York City for the purpose of getting their message out. They can be tourists, too. There's nothing wrong with that.
They should be given what other tourists are given, opportunities at the cultural institutions, discounts on dining, theater. You know, why not? This was really a welcome mat that we were putting out. So, you know, there's -- there's no conspiracy.
KAGAN: There's no conspiracy. I mean, I just have to say, you've got to be kidding.
NICHOLAS: Why? Look, if you were going to have a group and someone in the papers, they were reporting 200,000 people were going to be coming in...
(CROSSTALK)
KAGAN: But this is what -- I mean, you're expecting 200,000 protesters.
NICHOLAS: Well, that's -- that's what's been reported.
KAGAN: OK.
NICHOLAS: And if you did nothing, then would you really be welcoming? We're the tourism bureau.
KAGAN: Right.
NICHOLAS: That's what we do. We welcome people.
KAGAN: OK, you've got to -- you've got to do something.
NICHOLAS: You've got to do something. And...
KAGAN: But just like for the sake of conversation, let's think about this. Somebody is coming here to protest the Republican convention, they have some serious issues. They don't want to -- they don't like what the Republican platform might be. Do you really think they're going to come here, put on a button and go to a Broadway show?
NICHOLAS: They might. Hey, look, this came from the left.
I was up on the upper west side at a breakfast and someone said, "Why aren't you doing anything for the protesters?" So then we met with the group, with Gary Ferdman (ph), with others. So this is an idea...
(CROSSTALK)
KAGAN: (UNINTELLIGIBLE) to a Broadway show?
NICHOLAS: So, you know, we were -- you know, no good deed goes unpunished, right?
KAGAN: Right.
NICHOLAS: They tell us, what are you doing for us? So you put together an amazing program. It's like...
KAGAN: And you get laughed at.
NICHOLAS: Yes. So, look...
KAGAN: There you go.
NICHOLAS: ... this is part of -- it's going to be a fun week. A lot of people are going to be there.
You know, bravo to the president for picking New York City. We're very pleased. We need the help.
Keep in mind, we're not back from 9/11. We're still suffering with tourism. We may have more people, but we certainly don't have the spending because the international figures are way off.
So, you know, the more the merrier. But we -- the message also is very clear: keep it peaceful.
KAGAN: Right.
NICHOLAS: New York City isn't really going to want to tolerate riots or anything like that. We've got the best police department. You know, the will -- they will control that. But while you're here, we want you to have a good time.
KAGAN: Yes. And I'm not speaking for protesters, but I've got to think, a protester coming to town with something to say doesn't care so much about shopping, a good restaurant. Cares about getting the message out, cares about access to the people who are going to the conventions and not being held really far away.
NICHOLAS: OK. But they've got to eat, they've got to stay some place. So I would rather that they stay in a hotel. And if we can get hotel rates for them that are manageable, I would rather they stay in a hotel than in the park or on someone's couch. We need to make sure that New York City benefits economically because we're still not back fully from 9/11.
KAGAN: So you're saying it's two separate issues in terms of what kind of access they're going to get, where they're going to be allowed to protest.
NICHOLAS: That's not my department.
KAGAN: That's not you.
NICHOLAS: Yes. I'm the tourism bureau person.
KAGAN: OK.
NICHOLAS: You know, I just want everybody who comes to New York City to have a great time. Because, keep in mind, they're going to go home, back to their communities. And even if they protested, and, you know, they can say, but we had a wonderful time.
They may not agree with the president. That's their -- that's their issue. But I have to make sure that whoever comes to New York City is going to have, you know, as best a time as possible.
KAGAN: And hopefully empty their wallets a little bit.
NICHOLAS: Right, and come back. I mean, come -- bring -- bring their friends and family back for a vacation.
KAGAN: Doing what you can.
NICHOLAS: Yes.
KAGAN: Keep it peaceful, spend some money.
NICHOLAS: Exactly. Why not?
KAGAN: Thank you so much, Crystine Nicholas.
NICHOLAS: It's the American way.
KAGAN: Absolutely. Get a little capitalism in there. Crystine Nicholas, thanks for explaining the buttons. Appreciate it.
NICHOLAS: OK.
KAGAN: Well, an unexpected weather arrival causes some problems in western Pennsylvania. We'll have that story after the break, plus a check of the rest of the nation's weather forecast.
Still ahead, how doctors -- get this -- they used a piece of a woman's tooth to help restore her sight. It's a fascinating story. It's just ahead.
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KAGAN: Yes, it's summer. This is a summer storm laying down a carpet of hail yesterday near Pittsburgh. Excuse me.
The National Weather service did detect a tornado signature on the radar, but there were no specific reports of a funnel cloud. Power was knocked out to some 30,000 customers. Incredible.
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KAGAN: Another record high -- these different types of numbers -- another record high for oil prices. So what is fueling the spiral and what does it mean for your prices at the pump? We'll have a live report after the break.
Plus, Michael Jackson's lawyers take on a member of his accuser's family in court. Find out what happened coming up next.
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KAGAN: I'm Daryn Kagan in New York City today. Let's check what's happening "Now in the News" for this Friday, August 20th.
Despite reports to the contrary, fighters loyal to radical cleric Muqtada al-Sadr remain in control of the Imam Ali mosque in Najaf. Fighting continues outside the shrine. Al-Sadr aides do say that procedures are under way to hand over control of the mosque to senior religious leaders in Najaf.
Here in the U.S., Senator John Kerry campaigned in North Carolina this morning. And then he heads to Florida. He will tour damage from Hurricane Charley in the southwestern part of the state this afternoon.
And another explosion at a natural gas storage facility sent fire high into the early morning sky outside of Houston. Check out those pictures. Officials are expanding their evacuation zone from one mile to three miles after another blast took place.
Keeping you informed, CNN is the most trusted name in news.
And the standoff apparently continues in the Iraqi city of Najaf. The Iraqi government is urging militants there to lay down their weapons and join in the political process. In the last hour -- and we're looking at a live picture there from Najaf -- last hour, I had a chance to speak with the national security adviser, Mouwaffaq al- Rubaie.
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MOUWAFFAQ AL-RUBAIE, IRAQ NATIONAL SECURITY ADVISER: We in the executive arm of this government, we would like the (UNINTELLIGIBLE) trend. These -- his followers, his lieutenants, those who have not been incriminated and accused by -- for killing or for violating the law and disturbance or using any sort of violence, we would like to incorporate them and re-integrate them into the society and into the political process.
(END VIDEO CLIP)
KAGAN: Al-Rubaie says the democracy emerging in Iraq can accommodate even extremist groups, like followers of Muqtada al-Sadr.
Let's check in on oil prices now. They neared a record of $50 a barrel today. Traders are even talking about $60.
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